HomeMy WebLinkAbout24407RESOLUTION NO. 24407
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, DECLARING ITS
OFFICIAL INTENT TO REIMBURSE PROJECT
EXPENDITURES WITH BOND PROCEEDS AND RELATED
ACTIONS.
WHEREAS, the California Statewide Communities Development Authority (the
"Authority") intends to issue and sell special tax, special assessment or other bonds (the
"Bonds") to finance certain capital costs and development fees associated with the
Dream Hotel project (the "Project"), including the Parking Fee ("Parking Fee") due
pursuant to that certain Services Agreement (the "Agreement") between the City of
Palm Springs (the "City"), Selene Palm Springs, LLC and CDI Ventures, LLC (the
"Developer"), dated as of March 6, 2013, as amended; and
WHEREAS, beginning the 60-day period prior to the date hereof, the City has
paid or incurred, or expects to pay or incur, costs with respect to the parking
improvements to be funded with the Parking Fee prior to the issuance of the Bonds,
where such costs have been paid from amounts received as a portion of the Parking
Fees paid by the Developer; and
WHEREAS, in order to reimburse for the payment, or pay unpaid costs, of the
Parking Fee, the City anticipates the Authority will issue debt obligations in an amount
not expected to exceed $7,000,000 for the purpose of financing the Parking Fee and
other capital costs and development fees; and
WHEREAS, proceeds of such debt obligations (including the Bonds) will be
allocated to reimbursement expenditures no later than 18 months after the later of (i) the
date the cost is paid, or (ii) the date the parking improvements constructed with the
Parking Fee are placed in service or abandoned (but in no event more than three years
after the cost is paid); and
WHEREAS, the City is the applicable authorized entity to declare its reasonable
official intent to reimburse prior expenditures for the Parking Fee with proceeds of
indebtedness; and
WHEREAS, Section 1.150-2 of the Treasury Regulations requires the City to
declare its reasonable official intent to reimburse prior expenditures for the Parking Fee
with proceeds of indebtedness; and
WHEREAS, the City wishes to declare its official intent to use proceeds of
indebtedness (such as the Bonds) to reimburse expenditures paid with the Parking Fee
before any obligations are issued and to finance the Parking Fee on a long-term basis
with the proceeds of such indebtedness and thereby reimburse the Developer for
payment of the Parking Fee.
Resolution No. 24407
Page 2
NOW, THEREFORE, THE CITY COUNCIL DETERMINES, RESOLVES AND
APPROVES AS FOLLOWS:
SECTION 1. All of the recitals herein contained are true and correct and the City
Council (the "Council') so finds.
SECTION 2. This Resolution is adopted by the Council solely for purposes of
establishing compliance with the requirements of Section 1.150-2 of the Treasury
Regulations. Unless otherwise defined, terms used herein shall have the meaning set
forth in the Internal Revenue Code of 1986 and in Section 1.150-2 of the Treasury
Regulations. This Resolution does not bind the City to make any expenditure, incur any
indebtedness, or proceed with the Project.
SECTION 3. The officers, employees and agents of the City are hereby authorized and
directed, jointly and severally, to do any and all things which they may deem necessary
or advisable in order to consummate the actions herein authorized and otherwise to
carry out, give effect to and comply with the terms and intent of this Resolution.
SECTION 4. All actions heretofore taken by the officers, employees and agents of the
City with respect to the actions set forth above are hereby approved, confirmed and
ratified.
SECTION 5. This Resolution shall take effect immediately upon its adoption.
ADOPTED THIS 2"d DAY OF MAY. 2018.
David H. Ready, Esq., Ph.D.
City Manager
Resolution No. 24407
Page 3
CERTIFICATION
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 24407 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on May 2, 2018, by the following
vote:
AYES: Councilmembers Holstege, Kors, Middleton, Mayor Pro Tem Roberts, and
Mayor Moon
NOES: None
ABSENT: None
ABSTAIN: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Palm Springs, California, this 15+- day of Mau 201
nthony e'ia
City Clerk